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USD strength has seen Kiwi lose ground, but the NZD/USD pair remains within established ranges and economists at ANZ Bank are inclined to view the latest moves as a correction rather than the start of a new trend.

Key quotes

“The Kiwi has made an about turn as the USD has stretched its legs amid higher interest rates and rallying equities, but it remains within well-established ranges.”

“This recent fall is somewhat surprising given that the market has adopted the view that the RBNZ will be one of the earlier ‘hikers’ and given the performance of recent economic data. With that in mind, all eyes are on US employment data.” 

“Having not completely broken down, we’re more inclined to characterise the overnight as merely a correction.”

“Support 0.7090/0.7100 Resistance 0.7250/0.7300”